- Analytics
- News and Tools
- Market News
- EUR and GBP to weaken further, but not beyond YTD lows – HSBC
EUR and GBP to weaken further, but not beyond YTD lows – HSBC
Both the eurozone and the UK are likely headed for a recession so the European Central Bank (ECB) and the Bank of England (BoE) will likely miss market pricing for rate hikes, weighing on the EUR and GBP. Even if there were an accelerated and front-loaded tightening, any currency gain would unlikely be sustained, in the view of economists at HSBC.
EUR and GBP will likely face downside pressures over the medium term
“The ECB and the BoE may find it hard to match market pricing for rate hikes, weighing on the EUR and GBP.”
“Even if the ECB (or the BoE) were to deliver an outsized rate hike), we are not convinced that it would be positive for the EUR (or the GBP) beyond the knee-jerk reaction. An accelerated and front-loaded tightening would likely exacerbate growth concerns and possibly raise the risk of policy reversal in 2023.”
“More and more, the EUR and GBP seem to recognise that hiking into weakness is rarely positive. With risk aversion to be elevated amid continuing concerns about global growth, we look for both currencies to slip in equal fashion against the USD, albeit without reaching new year-to-date (YTD) lows in the coming few weeks.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
